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Core Insights - Allient Inc has experienced significant stock price increases, with a 105% rise over the past year and a 79% increase year-to-date [1] - However, the company's long-term performance is less impressive, showing only a 40% increase over the past five years, indicating challenges in sustaining growth [1] Company Analysis - The focus of the analysis is on Allient Inc, which has shown strong short-term performance but lacks long-term growth consistency [1] - The analyst emphasizes the importance of uncovering undervalued opportunities and unique business models within the context of Allient's performance [1]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Allient (ALNT) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's growth prospects beyond traditional metrics [2] - Allient has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2] Group 2: Earnings Growth - Historical EPS growth for Allient stands at 15.2%, but projected EPS growth for this year is significantly higher at 30.5%, surpassing the industry average of 15.9% [4] Group 3: Asset Utilization - Allient's asset utilization ratio (sales-to-total-assets ratio) is 0.89, indicating that the company generates $0.89 in sales for every dollar in assets, which is above the industry average of 0.74 [5] Group 4: Sales Growth - The company's sales are expected to grow by 1.2% this year, compared to an industry average of 0% [6] Group 5: Earnings Estimate Revisions - The current-year earnings estimates for Allient have been revised upward, with the Zacks Consensus Estimate increasing by 1% over the past month, indicating positive momentum [8] Group 6: Investment Positioning - Allient has achieved a Growth Score of A and a Zacks Rank of 2 due to positive earnings estimate revisions, positioning it well for potential outperformance in the growth stock category [10]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $139.6 million, a 3% increase year-over-year and a 5% increase sequentially, driven by strong demand in aerospace, defense, industrial markets, and select medical applications [9][10] - Gross margin reached a record 33.2%, up 100 basis points sequentially and 330 basis points year-over-year, attributed to a favorable mix, higher volumes, and improved operating discipline [6][13] - Net income increased to $5.6 million or $0.34 per diluted share, with adjusted net income at $9.5 million or $0.57 per diluted share, up from $0.46 in Q1 and $0.29 in the prior year [14][15] - Operating cash flow was a record $24.5 million, up 76% sequentially and nearly three times the level from the same period last year [17][18] Business Line Data and Key Metrics Changes - Aerospace and defense revenue grew 13%, reflecting strong execution and program timing [10] - Medical revenue increased by 4%, driven by solid demand for surgical instruments [11] - Industrial market revenue rose by 3%, supported by strength in HVAC and data center applications [11] - Vehicle revenue decreased by 7% due to ongoing softness in powersports, although there was sequential improvement [11][12] Market Data and Key Metrics Changes - Sales to U.S. customers accounted for 55% of total revenue, consistent with the previous year [9] - The backlog at the end of the quarter was $236.6 million, slightly down from Q1 and prior year levels, as customers managed through inventory normalization [21] - Demand trends in key sectors like industrial and aerospace and defense remain steady, with signs of recovery in industrial automation [21][23] Company Strategy and Development Direction - The company is focused on sustainable, profitable growth while delivering value to customers, employees, and shareholders [22] - The "Simplify to Accelerate Now" program is central to performance, driving efficiency and responsiveness across global operations [6][23] - The company is proactively managing external risks, including tariffs and supply dynamics related to rare earth materials [23] Management's Comments on Operating Environment and Future Outlook - Management noted that the destocking cycle appears to be largely behind them, with order activity becoming more consistent [21] - There is cautious optimism regarding the recovery in industrial automation and steady momentum in aerospace and defense [23] - The company expects Q3 sales to be sequentially lower due to revenue pulled into Q2, but remains confident in long-term growth prospects [22] Other Important Information - The company reduced debt by $20 million during the quarter, bringing net debt down by $35.8 million year-to-date [19] - Capital expenditures for the first half of the year were $3.2 million, with a revised full-year outlook of $8 million to $10 million [19] Q&A Session Summary Question: Insights on destocking and industrial demand - Management confirmed that destocking appears to be in the rearview mirror, with positive signs in industrial demand [29] Question: Aerospace and defense exposure and demand visibility - Management highlighted strong long-term visibility in aerospace and defense, with ongoing improvements in operating capabilities [30][31] Question: Rare earth magnets risk profile - Management expressed cautious optimism regarding supply chain improvements but acknowledged ongoing risks related to sourcing from China [34][35] Question: Revenue pull forward sources - The majority of revenue pull forward came from medical, high-end industrial, and defense segments [46][48] Question: Capacity for data center demand - Management confirmed that they are increasing capacity to meet growing demand in the data center market [82] Question: Automation market recovery - Management noted signs of normalization in the automation market, expecting positive impacts moving forward [85][86] Question: Munitions business capacity constraints - Management stated that they are not capacity constrained in the munitions business and have seen increased orders [90][91]

Financial Performance - Revenue reached $139.6 million, a 5% increase quarter-over-quarter (QoQ) and a 3% increase year-over-year (YoY)[5] - Net income was $5.6 million, showing a significant increase of 58% QoQ and 388% YoY[5] - Gross margin hit a record 33.2%, up 100 basis points (bps) QoQ and 330 bps YoY[5] - Operating margin improved to 8.4%, up 180 bps QoQ and 480 bps YoY[5] - Cash from operations surged to $24.5 million, a 76% increase QoQ and 197% YoY[5] Debt Reduction and Cost Savings - Debt, net of cash, decreased by $35.8 million year-to-date (YTD) to $152.3 million[5] - The company achieved $10 million in annualized savings in 2024 and aims to reduce costs by another $6 to $7 million in 2025[7] Market Segment Performance - Aerospace & Defense (A&D) sales increased by 13% YoY[11] - Medical sales increased by 4% YoY, driven by surgical instrument demand[11] - Industrial sales increased by 3% YoY, with strength in power quality solutions for HVAC and data centers[11] - Vehicle sales decreased by 7% YoY due to powersports softness[11]

Company Performance - Allient (ALNT) reported quarterly earnings of $0.57 per share, exceeding the Zacks Consensus Estimate of $0.48 per share, and showing an increase from $0.29 per share a year ago, representing an earnings surprise of +18.75% [1] - The company achieved revenues of $139.58 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.20%, and up from $136.03 million year-over-year [2] - Allient has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Stock Performance - Allient shares have increased approximately 63.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.53 on revenues of $135.17 million, and for the current fiscal year, it is $1.93 on revenues of $533.81 million [7] - The outlook for the Electronics - Miscellaneous Components industry, where Allient operates, is favorable, ranking in the top 37% of over 250 Zacks industries, suggesting potential for outperformance [8]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis of Allient Inc.'s financial condition and results of operations [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements of Allient Inc., including the balance sheets, statements of income and comprehensive income (loss), statements of stockholders' equity, and statements of cash flows, along with detailed notes explaining the accounting policies, significant transactions, and financial instrument disclosures [Condensed Consolidated Balance Sheets – Unaudited](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20%E2%80%93%20Unaudited) This statement provides a snapshot of the company's assets, liabilities, and stockholders' equity at specific points in time Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Cash and cash equivalents | $49,915 | $36,102 | | Total current assets | $253,938 | $237,580 | | Total Assets | $588,064 | $575,781 | | Total current liabilities | $67,816 | $57,377 | | Long-term debt | $202,218 | $224,177 | | Total liabilities | $299,002 | $310,927 | | Total stockholders' equity | $289,062 | $264,854 | - Total assets increased by **$12.283 million** from December 31, 2024, to June 30, 2025, primarily driven by an increase in cash and cash equivalents[9](index=9&type=chunk) - Total liabilities decreased by **$11.925 million**, mainly due to a reduction in long-term debt[9](index=9&type=chunk) [Condensed Consolidated Statements of Income and Comprehensive Income (Loss) – Unaudited](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income%20%28Loss%29%20%E2%80%93%20Unaudited) This statement details the company's revenues, expenses, net income, and comprehensive income over specific reporting periods Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (in thousands, except per share data) | Metric (in thousands, except per share data) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $139,578 | $136,032 | $272,381 | $282,745 | | Gross profit | $46,356 | $40,676 | $89,108 | $88,053 | | Operating income | $11,677 | $4,879 | $20,456 | $16,979 | | Net income | $5,617 | $1,150 | $9,174 | $8,052 | | Basic earnings per share | $0.34 | $0.07 | $0.55 | $0.49 | | Diluted earnings per share | $0.34 | $0.07 | $0.55 | $0.49 | | Comprehensive income (loss) | $16,851 | $(539) | $23,644 | $1,877 | - Net income for the three months ended June 30, 2025, significantly increased to **$5,617 thousand** from **$1,150 thousand** in the prior year, a **388% increase**[11](index=11&type=chunk) - For the six months ended June 30, 2025, revenues decreased by **4%** year-over-year, while net income increased by **14%**[11](index=11&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity – Unaudited](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity%20%E2%80%93%20Unaudited) This statement outlines changes in the company's equity accounts, including net income, dividends, and other comprehensive income Condensed Consolidated Statements of Stockholders' Equity (in thousands) | Metric (in thousands) | December 31, 2024 | June 30, 2025 | | :-------------------- | :---------------- | :------------ | | Total Stockholders' Equity | $264,854 | $289,062 | **Key Changes (December 31, 2024 to June 30, 2025):** * **Net income:** $9,174 (cumulative for six months) * **Stock-based compensation expense:** $1,755 * **Dividends to stockholders:** $(1,000) * **Foreign currency translation adjustment:** $15,506 (gain) * **Unrealized loss on cash flow hedges:** $(641) * **Amounts reclassified from AOCI:** $(755) - Total stockholders' equity increased from **$264,854 thousand** at December 31, 2024, to **$289,062 thousand** at June 30, 2025, primarily driven by net income and foreign currency translation gains[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows – Unaudited](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%E2%80%93%20Unaudited) This statement reports the cash generated and used by the company's operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $38,435 | $17,377 | | Net cash used in investing activities | $(3,189) | $(30,559) | | Net cash (used in) provided by financing activities | $(24,286) | $13,314 | | Effect of foreign exchange rate changes on cash | $2,853 | $(741) | | Net increase (decrease) in cash and cash equivalents | $13,813 | $(609) | | Cash and cash equivalents at end of period | $49,915 | $31,292 | - Net cash provided by operating activities significantly increased to **$38,435 thousand** for the six months ended June 30, 2025, from **$17,377 thousand** in the prior year, an increase of **$21,058 thousand**[16](index=16&type=chunk)[140](index=140&type=chunk) - Net cash used in investing activities decreased substantially to **$3,189 thousand** in 2025 from **$30,559 thousand** in 2024, primarily due to lower acquisition-related payments in the current period[16](index=16&type=chunk)[142](index=142&type=chunk) - Net cash used in financing activities was **$24,286 thousand** in 2025, a shift from **$13,314 thousand** provided in 2024, mainly due to debt payments and no new significant debt issuance[16](index=16&type=chunk)[144](index=144&type=chunk) [Notes to Condensed Consolidated Financial Statements – Unaudited](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20%E2%80%93%20Unaudited) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements [1. Basis of Preparation and Presentation](index=8&type=section&id=1.%20Basis%20of%20Preparation%20and%20Presentation) This note describes the accounting principles, policies, and methods used in preparing the financial statements - Allient Inc. designs, manufactures, and sells precision motion, control, power, and structural composites for industrial, vehicle, medical, and aerospace and defense markets globally[18](index=18&type=chunk) - The company translates foreign subsidiary assets and liabilities using end-of-period exchange rates, with translation adjustments included in accumulated other comprehensive loss[20](index=20&type=chunk) - The company is assessing the impact of new accounting standards: ASU 2023-09 (Income Tax Disclosures, effective after Dec 15, 2024) and ASU 2024-03 (Expense Disaggregation Disclosures, effective after Dec 15, 2026)[24](index=24&type=chunk)[25](index=25&type=chunk) [2. Acquisitions](index=9&type=section&id=2.%20Acquisitions) This note details the company's recent acquisition activities, including purchase prices and allocation of acquired assets and liabilities - On January 11, 2024, Allient Inc. acquired SNC Manufacturing Co., Inc. for **$20,000 thousand** in cash, a designer and manufacturer of electrical transformers[26](index=26&type=chunk)[27](index=27&type=chunk) Acquired Assets (SNC) (in thousands) | Acquired Assets (SNC) | Fair Value (in thousands) | | :-------------------- | :------------------------ | | Cash and cash equivalents | $881 | | Trade receivables | $3,467 | | Inventories | $8,600 | | Property, plant, and equipment | $4,258 | | Intangible assets | $2,900 | | Goodwill | $2,955 | | Net purchase price | $19,724 | - Goodwill from the SNC acquisition, totaling **$2,955 thousand**, is related to the assembled workforce, expected synergies, and integrated system solutions, and is not tax deductible[29](index=29&type=chunk)[30](index=30&type=chunk) - The final deferred acquisition payment for Spectrum Controls, Inc. of **$12,500 thousand** (50% cash, 50% stock) was paid on January 3, 2024[30](index=30&type=chunk) [3. Revenue Recognition](index=11&type=section&id=3.%20Revenue%20Recognition) This note explains the company's policies for recognizing revenue from contracts with customers, including disaggregated revenue data - The Company generally recognizes revenue at a single point in time when control of products transfers to the customer, typically upon shipment[32](index=32&type=chunk)[33](index=33&type=chunk) - Allient Inc. designs, manufactures, and sells precision motion, control, power, and structural components, including motors, drives, gears, and filters, to industrial, vehicle, medical, and aerospace & defense markets[35](index=35&type=chunk) Revenue by Target Market (in thousands) | Target Market (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Industrial | $65,455 | $63,484 | $127,881 | $133,078 | | Vehicle | $26,721 | $28,662 | $49,694 | $63,316 | | Medical | $20,045 | $19,235 | $39,147 | $38,321 | | Aerospace & Defense | $20,961 | $18,477 | $41,997 | $35,295 | | Distribution and Other | $6,396 | $6,174 | $13,662 | $12,735 | | **Total** | **$139,578** | **$136,032** | **$272,381** | **$282,745** | Revenue by Geography (in thousands) | Geography (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | North America | $92,352 | $91,920 | $178,625 | $191,623 | | Europe | $40,983 | $37,145 | $81,047 | $77,805 | | Asia-Pacific | $6,243 | $6,967 | $12,709 | $13,317 | | **Total** | **$139,578** | **$136,032** | **$272,381** | **$282,745** | [4. Inventories](index=15&type=section&id=4.%20Inventories) This note provides a breakdown of inventory components and changes over the reporting period Inventory Components (in thousands) | Inventory Component (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :---------------- | | Parts and raw materials | $78,219 | $78,725 | | Work-in-process | $12,161 | $12,274 | | Finished goods | $16,168 | $20,518 | | **Total Inventories** | **$106,548** | **$111,517** | - Total inventories decreased by **$4,969 thousand** from December 31, 2024, to June 30, 2025, primarily due to a reduction in finished goods[44](index=44&type=chunk) [5. Property, Plant and Equipment](index=15&type=section&id=5.%20Property,%20Plant%20and%20Equipment) This note details the company's property, plant, and equipment, including additions, disposals, and depreciation Property, Plant and Equipment, Net (in thousands) | PP&E Component (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Land | $1,797 | $1,770 | | Building and improvements | $29,798 | $29,161 | | Machinery, equipment, tools and dies | $118,706 | $110,194 | | Construction in progress | $1,918 | $2,856 | | Furniture, fixtures and other | $26,057 | $25,270 | | Less accumulated depreciation | $(114,329) | $(103,566) | | **PP&E, net** | **$63,947** | **$65,685** | - Depreciation expense was **$3,276 thousand** for the three months ended June 30, 2025, and **$6,464 thousand** for the six months ended June 30, 2025[45](index=45&type=chunk) [6. Goodwill](index=15&type=section&id=6.%20Goodwill) This note outlines the company's goodwill balance and any changes, primarily due to foreign currency translation Goodwill (in thousands) | Goodwill (in thousands) | June 30, 2025 | | :---------------------- | :------------ | | Beginning balance | $131,789 | | Effect of foreign currency translation | $2,821 | | **Ending balance** | **$134,610** | - Goodwill increased by **$2,821 thousand** for the six months ended June 30, 2025, primarily due to the effect of foreign currency translation[46](index=46&type=chunk) [7. Intangible Assets](index=16&type=section&id=7.%20Intangible%20Assets) This note provides information on the company's intangible assets, their amortization periods, and estimated future amortization expense Intangible Assets Net Book Value (in thousands) | Intangible Asset (in thousands) | Weighted Average Amortization Period | June 30, 2025 Net Book Value | December 31, 2024 Net Book Value | | :------------------------------ | :----------------------------------- | :--------------------------- | :------------------------------- | | Customer lists | 14.1 years | $63,171 | $66,272 | | Trade name | 13.7 years | $7,073 | $7,326 | | Design and technologies | 10.5 years | $24,651 | $26,073 | | **Total** | | **$94,895** | **$99,671** | - Total net intangible assets decreased from **$99,671 thousand** at December 31, 2024, to **$94,895 thousand** at June 30, 2025[47](index=47&type=chunk) Estimated Amortization Expense (in thousands) | Year ending December 31, | Estimated Amortization Expense (in thousands) | | :----------------------- | :-------------------------------------------- | | Remainder of 2025 | $6,276 | | 2026 | $12,454 | | 2027 | $12,011 | | 2028 | $11,247 | | 2029 | $9,608 | | Thereafter | $43,299 | | **Total** | **$94,895** | [8. Stock-Based Compensation](index=16&type=section&id=8.%20Stock-Based%20Compensation) This note describes the company's stock-based compensation plans, including awards granted, vesting, and related expenses - For the six months ended June 30, 2025, **148,590 shares** of unvested restricted stock were awarded at a weighted average market value of **$23.68**, with **71,326 shares** having performance-based vesting conditions[50](index=50&type=chunk) Restricted Stock Activity (shares) | Restricted Stock Activity (shares) | Six months ended June 30, 2025 | | :--------------------------------- | :----------------------------- | | Outstanding at beginning of period | 236,340 | | Awarded | 148,590 | | Vested | (120,219) | | Forfeited | (5,579) | | **Outstanding at end of period** | **259,132** | - Stock-based compensation expense, net of forfeitures, was **$835 thousand** for the three months ended June 30, 2025, and **$1,755 thousand** for the six months ended June 30, 2025[52](index=52&type=chunk) [9. Accrued Liabilities](index=17&type=section&id=9.%20Accrued%20Liabilities) This note details the components of accrued liabilities, including compensation, warranty reserves, and restructuring accruals Accrued Liabilities (in thousands) | Accrued Liability (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------- | :------------ | :---------------- | | Compensation and fringe benefits | $14,850 | $13,134 | | Warranty reserve | $2,301 | $1,966 | | Income taxes payable | $387 | $1,472 | | Operating lease liabilities – current | $5,370 | $5,088 | | Finance lease obligations – current | $466 | $448 | | Contract liabilities | $3,094 | $2,292 | | Restructuring related accruals | $1,610 | $0 | | Other accrued expenses | $6,496 | $5,821 | | **Total Accrued Liabilities** | **$34,574** | **$30,221** | - The company initiated a 'Simplify to Accelerate NOW' strategy in Q1 2025, creating a Machining Center of Excellence in Dothan, Alabama, and merging assembly operations into Tulsa, Oklahoma, and Reynosa, Mexico[53](index=53&type=chunk) - Restructuring costs are estimated at **$4 to $5 million**, primarily for employee severance, with **$1,610 thousand** accrued as of June 30, 2025[54](index=54&type=chunk) [10. Debt Obligations](index=18&type=section&id=10.%20Debt%20Obligations) This note provides information on the company's debt, including credit facilities, notes payable, and compliance with financial covenants Debt Obligations (in thousands) | Debt Obligation (in thousands) | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | Revolving Credit Facility | $146,962 | $168,962 | | Note Payable | $50,000 | $50,000 | | Unamortized debt issuance costs | $(2,663) | $(2,945) | | Finance lease obligations – noncurrent | $7,919 | $8,160 | | **Long-term debt** | **$202,218** | **$224,177** | - The company entered into a **$280 million** revolving credit facility (maturing March 1, 2029) and a **$150 million** fixed-rate private shelf facility in March 2024, with **$50 million** borrowed under the latter[56](index=56&type=chunk) - Financial covenants require a minimum interest coverage ratio of **3.0:1.0** and a leverage ratio not exceeding **3.75:1.0** (with temporary increases allowed after material acquisitions), and the company was in compliance as of June 30, 2025[58](index=58&type=chunk)[145](index=145&type=chunk) - As of June 30, 2025, the unused Revolving Facility was **$133,038 thousand**, and amendments in October 2024 temporarily increased the maximum Leverage Ratio and adjusted interest rates on the Revolving Facility and Series A Notes[62](index=62&type=chunk)[63](index=63&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) [11. Derivative Financial Instruments](index=20&type=section&id=11.%20Derivative%20Financial%20Instruments) This note describes the company's use of derivative instruments to hedge foreign currency and interest rate exposures - The company uses foreign currency contracts with notional amounts of **$35,579 thousand** at June 30, 2025, to hedge short-term balance sheet exposure in various currencies[65](index=65&type=chunk)[152](index=152&type=chunk) - Interest rate swaps are used to stabilize interest expense and manage exposure to variable-rate debt, with notional amounts of **$40,000 thousand** (maturing Dec 2026) and **$50,000 thousand** (maturing Sep 2027)[66](index=66&type=chunk)[154](index=154&type=chunk) Derivative Financial Instruments Fair Value (in thousands) | Derivative Type (in thousands) | June 30, 2025 Fair Value | December 31, 2024 Fair Value | | :----------------------------- | :----------------------- | :--------------------------- | | Foreign currency contracts (asset) | $105 | $0 | | Interest rate swaps (asset) | $1,133 | $2,575 | | Foreign currency contracts (liability) | $0 | $137 | - The company estimates that **$1,017 thousand** will be reclassified as a decrease to interest expense over the next twelve months related to its interest rate derivatives[69](index=69&type=chunk) [12. Fair Value](index=23&type=section&id=12.%20Fair%20Value) This note explains the company's fair value measurements for financial instruments, categorized by a three-level hierarchy - The company classifies fair value measurements into a three-level hierarchy: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[75](index=75&type=chunk)[76](index=76&type=chunk) Financial Instrument Fair Value (in thousands) | Financial Instrument (in thousands) | June 30, 2025 (Level 1) | June 30, 2025 (Level 2) | December 31, 2024 (Level 1) | December 31, 2024 (Level 2) | | :---------------------------------- | :---------------------- | :---------------------- | :-------------------------- | :-------------------------- | | Pension plan assets | $6,430 | $0 | $6,164 | $0 | | Deferred compensation plan assets | $4,900 | $0 | $4,647 | $0 | | Foreign currency hedge contracts, net | $0 | $105 | $0 | $(137) | | Interest rate swaps, net | $0 | $1,133 | $0 | $2,575 | [13. Income Taxes](index=24&type=section&id=13.%20Income%20Taxes) This note details the company's effective income tax rates and the impact of recent tax legislation Effective Income Tax Rate | Period | Effective Income Tax Rate | | :----- | :------------------------ | | Q2 2025 | 23.1% | | Q2 2024 | 20.6% | | YTD 2025 | 22.0% | | YTD 2024 | 21.6% | - The effective income tax rate increased in Q2 2025 compared to Q2 2024, primarily due to the impact of discrete tax costs on share-based awards[80](index=80&type=chunk)[116](index=116&type=chunk)[128](index=128&type=chunk) - The company is evaluating the financial implications of the 'One Big Beautiful Bill Act' (OBBBA), signed into law on July 4, 2025, which modifies income tax treatment of R&D expenses, bonus depreciation, and international tax regimes[81](index=81&type=chunk)[104](index=104&type=chunk) [14. Leases](index=24&type=section&id=14.%20Leases) This note provides information on the company's operating and finance leases, including cash flow impacts and maturity schedules Lease Cash Flow Information (in thousands) | Cash Flow Information (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Cash paid for operating leases | $3,367 | $3,185 | | Cash paid for interest on finance lease obligations | $195 | $205 | | Assets acquired under operating leases | $1,385 | $858 | Lease Maturity (in thousands) | Lease Maturity (in thousands) | Operating Leases (Total Undiscounted Cash Flows) | Finance Leases (Total Undiscounted Cash Flows) | | :---------------------------- | :----------------------------------------------- | :--------------------------------------------- | | Remainder of 2025 | $3,234 | $416 | | 2026 | $6,048 | $848 | | 2027 | $5,284 | $867 | | 2028 | $3,966 | $886 | | 2029 | $2,735 | $906 | | Thereafter | $5,836 | $6,977 | | **Total undiscounted cash flows** | **$27,103** | **$10,900** | - The company has operating leases for facilities from companies where a member of management is a part owner, with future fixed minimum lease payments of **$6,956 thousand** as of June 30, 2025[86](index=86&type=chunk) [15. Accumulated Other Comprehensive (Loss) Income](index=26&type=section&id=15.%20Accumulated%20Other%20Comprehensive%20%28Loss%29%20Income) This note details the components of accumulated other comprehensive income (loss) and changes during the period Accumulated Other Comprehensive (Loss) Income (in thousands) | AOCI Component (in thousands) | At December 31, 2024 | At June 30, 2025 | | :---------------------------- | :------------------- | :--------------- | | Defined Benefit Plan Liability | $131 | $131 | | Cash Flow Hedges | $2,522 | $1,126 | | Tax Effect of Cash Flow Hedges | $(547) | $(186) | | Foreign Currency Translation Adjustment | $(25,289) | $(9,783) | | **Total AOCI** | **$(23,183)** | **$(8,712)** | - Accumulated Other Comprehensive Loss improved from **$(23,183) thousand** at December 31, 2024, to **$(8,712) thousand** at June 30, 2025, primarily due to a significant foreign currency translation gain of **$15,506 thousand**[87](index=87&type=chunk)[88](index=88&type=chunk) [16. Dividends Per Share](index=27&type=section&id=16.%20Dividends%20Per%20Share) This note reports the quarterly dividends declared per share for common stockholders - The company declared a quarterly dividend of **$0.03 per share** in the first and second quarters of both 2025 and 2024[89](index=89&type=chunk) [17. Earnings Per Share](index=28&type=section&id=17.%20Earnings%20Per%20Share) This note provides the calculation of basic and diluted earnings per share, including weighted average shares outstanding Weighted Average Shares Outstanding (in thousands) | Shares (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic weighted average shares outstanding | 16,687 | 16,567 | 16,639 | 16,480 | | Diluted weighted average shares outstanding | 16,713 | 16,583 | 16,671 | 16,540 | - Anti-dilutive common shares excluded from diluted EPS calculation were **55,000** and **64,000** for the three and six months ended June 30, 2025, respectively[91](index=91&type=chunk) [18. Segment Information](index=28&type=section&id=18.%20Segment%20Information) This note clarifies that the company operates as a single reportable segment and provides revenue concentration details - The company operates as a single reportable segment focused on the manufacture and marketing of specialty-controlled motion products and solutions[92](index=92&type=chunk) - For the three months ended June 30, 2025, **55% of revenue** was shipped to U.S. customers, with the remainder to foreign customers primarily in Europe, Canada, and Asia-Pacific[94](index=94&type=chunk) - No single customer accounted for a material concentration of revenue or accounts receivable for the three and six months ended June 30, 2025[95](index=95&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, including an overview of the business, recent strategic initiatives, the impact of the global environment, detailed analysis of operating results for the quarter and year-to-date, and a discussion of liquidity and capital resources [Forward-Looking Statements](index=29&type=section&id=Forward-Looking%20Statements) This section highlights the inherent uncertainties and risks associated with forward-looking statements in the report - The report contains forward-looking statements subject to known and unknown risks and uncertainties, including domestic and foreign economic conditions, global pandemics, geopolitical conflicts, new technologies, intellectual property protection, growth management, customer success, supply chain issues, IT system failures, government regulations, financing availability, personnel retention, and acquisition integration[97](index=97&type=chunk) [Overview](index=29&type=section&id=Overview) This section provides a general description of Allient Inc.'s business, market focus, and strategic direction - Allient Inc. is a global company specializing in designing, manufacturing, and selling precision motion, control, power, and structural composites for industrial, vehicle, medical, and aerospace and defense markets[99](index=99&type=chunk) - The company is refining its strategy to expand vertical market focus and leverage three technology pillars: Motion, Controls, and Power, reflected in its new brand 'Allient' (short for Allied Nexus Technologies)[100](index=100&type=chunk) [Recent Events](index=31&type=section&id=Recent%20Events) This section discusses key recent strategic initiatives, including operational realignment and the impact of new tax legislation - The company is executing its 'Simplify to Accelerate NOW' program in 2024-2025 to realign manufacturing footprint and streamline operations for enhanced efficiency and profitability[101](index=101&type=chunk) - As part of this strategy, Allient is creating a Machining Center of Excellence in Dothan, Alabama, and merging assembly operations into facilities in Tulsa, Oklahoma, and Reynosa, Mexico[102](index=102&type=chunk) - One-time costs for this realignment are estimated at **$4 to $5 million**, primarily for employee severance, with expected annualized cost savings of **$6 to $7 million** in 2025[103](index=103&type=chunk) - The company is evaluating the financial implications of the 'One Big Beautiful Bill Act' (OBBBA), signed July 4, 2025, which modifies income tax treatment for R&D expenses, bonus depreciation, and international tax regimes[104](index=104&type=chunk) [Global Environment](index=31&type=section&id=Global%20Environment) This section addresses the company's response to global economic uncertainties, trade policies, and geopolitical conflicts - The company is monitoring and adjusting operations due to proposed and implemented foreign trade policies, tariffs, and reciprocal trade restrictions, which may impact its manufacturing in Mexico, China, and Europe[105](index=105&type=chunk) - Geopolitical conflicts are causing economic uncertainty, increased volatility in energy prices, interest rates, supply chain disruptions, and changes in customer ordering patterns, which the company is actively managing[106](index=106&type=chunk) [Operating Results](index=32&type=section&id=Operating%20Results) This section analyzes the company's financial performance, including revenues, gross profit, and net income, for the reported periods [Three months ended June 30, 2025 compared to three months ended June 30, 2024](index=32&type=section&id=Three%20months%20ended%20June%2030,%202025%20compared%20to%20three%20months%20ended%20June%2030,%202024) This section compares the company's financial performance for the second quarter of 2025 against the same period in 2024 Operating Results (in thousands, except per share data) | Metric (in thousands, except per share data) | June 30, 2025 | June 30, 2024 | Variance $ | Variance % | | :------------------------------------------- | :------------ | :------------ | :--------- | :--------- | | Revenues | $139,578 | $136,032 | $3,546 | 3% | | Gross profit | $46,356 | $40,676 | $5,680 | 14% | | Gross margin percentage | 33.2% | 29.9% | | | | Operating income | $11,677 | $4,879 | $6,798 | 139% | | Net income | $5,617 | $1,150 | $4,467 | 388% | | Diluted earnings per share | $0.34 | $0.07 | $0.267 | 386% | | Bookings | $135,032 | $137,373 | $(2,341) | (2)% | | Backlog | $236,586 | $259,002 | $(22,416) | (9)% | - Revenue increased by **3%** in Q2 2025, driven by growth in Medical, Industrial, and Aerospace and Defense markets, partially offset by a decrease in Vehicle, with organic revenue up **0.9%** and foreign currency impact of **1.8%**[107](index=107&type=chunk) - Gross margin improved to **33.2%** from **29.9%** due to higher sales volume, improved product mix, and operational improvements from the 'Simplify to Accelerate NOW' strategy[109](index=109&type=chunk) - Operating expenses decreased by **3%**, reflecting cost reduction actions from the 'Simplify to Accelerate NOW' strategy, particularly in selling and engineering and development expenses[107](index=107&type=chunk)[110](index=110&type=chunk)[112](index=112&type=chunk) [Six months ended June 30, 2025 compared to six months ended June 30, 2024](index=35&type=section&id=Six%20months%20ended%20June%2030,%202025%20compared%20to%20six%20months%20ended%20June%2030,%202024) This section compares the company's year-to-date financial performance for 2025 against the same period in 2024 Operating Results (in thousands, except per share data) | Metric (in thousands, except per share data) | June 30, 2025 | June 30, 2024 | Variance $ | Variance % | | :------------------------------------------- | :------------ | :------------ | :--------- | :--------- | | Revenues | $272,381 | $282,745 | $(10,364) | (4)% | | Gross profit | $89,108 | $88,053 | $1,055 | 1% | | Gross margin percentage | 32.7% | 31.1% | | | | Operating income | $20,456 | $16,979 | $3,477 | 20% | | Net income | $9,174 | $8,052 | $1,122 | 14% | | Diluted earnings per share | $0.55 | $0.49 | $0.060 | 12% | | Bookings | $272,655 | $259,500 | $13,155 | 5% | | Backlog | $236,586 | $259,002 | $(22,416) | (9)% | - Revenues decreased by **4%** year-to-date 2025, primarily due to decreases in Vehicle and Industrial markets, elevated shipments in prior year as supply chains normalized, and elevated inventory/slowing demand in the current period[119](index=119&type=chunk) - Bookings increased by **5%** year-to-date 2025, reflecting steady demand in the Industrial market and continued strength in Aerospace & Defense[120](index=120&type=chunk) - Gross margin improved to **32.7%** from **31.1%** due to improved product mix and operational improvements from the 'Simplify to Accelerate NOW' strategy, despite lower sales volume[121](index=121&type=chunk) [Non-GAAP Measures](index=37&type=section&id=Non-GAAP%20Measures) This section presents financial measures not prepared in accordance with GAAP, providing additional insights into operational performance - The company provides non-GAAP measures (Organic revenue, EBITDA, Adjusted EBITDA, Adjusted net income, Adjusted diluted EPS) to offer supplemental information for evaluating operating results, excluding items not indicative of ongoing operations[131](index=131&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) Non-GAAP Financial Metrics (in thousands) | Non-GAAP Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | EBITDA | $17,255 | $11,249 | $31,631 | $29,843 | | Adjusted EBITDA | $20,067 | $13,931 | $37,539 | $33,971 | | Adjusted net income | $9,525 | $4,857 | $17,118 | $14,403 | | Adjusted diluted earnings per share | $0.57 | $0.29 | $1.03 | $0.87 | Organic Revenue Calculation | Organic Revenue Calculation | Three months ended June 30, 2025 | Six months ended June 30, 2025 | | :-------------------------- | :------------------------------- | :----------------------------- | | Revenue change over prior year | 2.6% | (3.7)% | | Less: Impact of acquisitions and foreign currency | 1.7% | 0.6% | | **Organic revenue** | **0.9%** | **(4.3)%** | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, cash flow activities, debt, and ability to meet future financial obligations - Cash and cash equivalents increased by **$13,813 thousand** to **$49,915 thousand** at June 30, 2025, from December 31, 2024[139](index=139&type=chunk) - Net cash provided by operating activities increased by **$21,058 thousand** to **$38,435 thousand** for the six months ended June 30, 2025, driven by improved inventory management and higher net income[140](index=140&type=chunk)[141](index=141&type=chunk) - Net cash used in investing activities decreased significantly by **$27,370 thousand**, primarily due to lower acquisition-related payments in 2025 compared to 2024[140](index=140&type=chunk)[142](index=142&type=chunk) - The company expects capital expenditures to be between **$8,000 thousand** and **$10,000 thousand** for the full year 2025[143](index=143&type=chunk) - The company believes its existing cash, anticipated operating cash flows, and available financing under the Amended Credit Agreement are sufficient to meet cash needs for the next twelve months[149](index=149&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risks, specifically foreign currency exchange rate fluctuations and interest rate movements, and outlines the strategies employed to mitigate these risks [Foreign Currency](index=43&type=section&id=Foreign%20Currency) This section describes the company's exposure to foreign currency exchange rate fluctuations and its hedging strategies - The company has international operations in various countries, exposing it to foreign currency exchange rate fluctuations in Euros, Swedish Krona, Chinese Renminbi, Canadian dollar, Czech Krona, Mexican pesos, British Pound Sterling, and New Zealand dollar[150](index=150&type=chunk) - A hypothetical **10% change** in the U.S. dollar's value would impact sales by approximately **$4,880 thousand** for the six months ended June 30, 2025, and foreign net assets by approximately **$18,294 thousand** as of June 30, 2025[150](index=150&type=chunk)[151](index=151&type=chunk) - The company uses foreign currency contracts with notional amounts of **$35,579 thousand** at June 30, 2025, to hedge short-term balance sheet exposure, recording gains of **$1,193 thousand** and **$1,070 thousand** for the three and six months ended June 30, 2025, respectively[152](index=152&type=chunk) [Interest Rates](index=45&type=section&id=Interest%20Rates) This section details the company's exposure to interest rate movements on its debt obligations and its use of interest rate swaps - The Series A Notes bear a fixed interest rate of **5.96%** (**6.46%** from Oct 1, 2024, through Sep 30, 2025) and mature on March 21, 2031[153](index=153&type=chunk) - Interest rates on the Credit Facility are variable, based on Term SOFR plus a margin of **1.25% to 2.50%** (**2.50%** at June 30, 2025)[154](index=154&type=chunk) - The company uses interest rate swaps to manage variable-rate debt exposure, hedging **$90,000 thousand** of the **$146,962 thousand** outstanding under the Revolving Facility as of June 30, 2025[154](index=154&type=chunk)[155](index=155&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) This section provides management's conclusions on the effectiveness of the company's disclosure controls and procedures and reports on any changes in internal control over financial reporting [Conclusion regarding the effectiveness of disclosure controls and procedures](index=45&type=section&id=Conclusion%20regarding%20the%20effectiveness%20of%20disclosure%20controls%20and%20procedures) This section states management's assessment of the effectiveness of the company's disclosure controls and procedures - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[156](index=156&type=chunk)[158](index=158&type=chunk) [Changes in internal control over financial reporting](index=47&type=section&id=Changes%20in%20internal%20control%20over%20financial%20reporting) This section reports on any material changes in the company's internal control over financial reporting during the quarter - There were no changes in internal control over financial reporting during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[159](index=159&type=chunk) [PART II. OTHER INFORMATION](index=30&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section includes additional information not covered in Part I, such as risk factors, equity sales, and exhibits [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the risk factors previously disclosed in the company's annual report, noting no material changes except for factual updates within the current Form 10-Q - There have been no material changes to the risk factors disclosed in the Company's Form 10-K for the year ended December 31, 2024, except as updated by factual information in this Form 10-Q[160](index=160&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports on the company's equity security transactions, specifically detailing shares withheld to satisfy tax withholding obligations related to restricted stock vesting Shares Purchased to Satisfy Tax Withholding Obligations | Period | Number of Shares Purchased (1) | Average Price Paid per Share | | :----------------- | :----------------------------- | :--------------------------- | | 04/01/25 to 04/30/25 | 43,465 | $22.00 | | 05/01/25 to 05/31/25 | — | — | | 06/01/25 to 06/30/25 | — | — | | **Total** | **43,465** | **$22.00** | (1) These shares were withheld by the Company to satisfy tax withholding obligations in connection with the vesting of stock - The company did not have an authorized stock repurchase plan in place as of June 30, 2025[161](index=161&type=chunk) [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) This section confirms that no directors or executive officers engaged in or terminated Rule 10b5-1 trading arrangements during the reported quarter - None of the company's directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025[162](index=162&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including certifications from the Chief Executive Officer and Chief Financial Officer, and various XBRL taxonomy documents - Exhibits include certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[165](index=165&type=chunk) - The filing also includes various Inline XBRL Taxonomy Extension documents (Schema, Calculation Linkbase, Definition Linkbase, Label Linkbase, Presentation Linkbase) and the Cover Page Interactive Data File[165](index=165&type=chunk)

Market Overview - Wall Street experienced a significant rebound in May, driven by optimism surrounding a potential U.S.-China trade deal, a delay in tariffs on the European Union, and positive developments in broader trade negotiations [1] - The cooling inflation environment, with the core PCE rising only 0.1% in April, is contributing to a more supportive monetary stance from the Federal Reserve, fostering bullish market sentiment [2] Investment Strategy - Investors are encouraged to focus on relative price strength as a strategy to identify outperforming stocks during market uptrends [3][4] - Stocks that have shown better performance than their peers or the industry average, despite strong earnings growth or valuation multiples, should be prioritized [5] Stock Recommendations - Five stocks identified with strong relative price performance over 1, 4, and 12-week periods include: - OppFi Inc. (OPFI) with a market cap of $1.1 billion and a 326% increase in shares over the past year [11][12] - Allient Inc. (ALNT) with a market cap of $534.5 million and a 25% increase in shares over the past year [13][14] - Pagaya Technologies Ltd. (PGY) with a market cap of $1.3 billion and a 43.3% increase in shares over the past year [15][16] - Great Lakes Dredge & Dock Corporation (GLDD) with a market cap of $789.3 million and a 26% increase in shares over the past year [17][18] - NetEase, Inc. (NTES) with a market cap of almost $80 billion and a 35% increase in shares over the past year [18][19] Earnings Estimates - Positive revisions in earnings estimates for Q1 have been noted for all five recommended stocks, indicating potential for further price gains [9][12][14][16][18]

Industry Overview - The Zacks Electronics - Miscellaneous Components industry is benefiting from increased automation and spending by manufacturers in sectors such as semiconductors, automobiles, machinery, and mobile phones [1] - Key players like TTM Technologies, American Superconductor, and Allient are positioned to gain from the adoption of AI and IoT, impacting various sectors including robotics, industrial automation, and healthcare [1][2] Trends Shaping the Industry - The automation boom is driving demand for faster, more powerful, and energy-efficient electronics, with collaborative robots enhancing production efficiency [3] - Miniaturization in semiconductor manufacturing is a significant trend, with strong demand for advanced packaging and new manufacturing materials [4] - Geopolitical tensions, particularly the Russia-Ukraine war and U.S.-China relations, pose challenges for the industry, especially regarding semiconductor trade restrictions [5] Industry Performance and Valuation - The Zacks Electronics - Miscellaneous Components industry ranks 80, placing it in the top 33% of over 250 Zacks industries, indicating bullish near-term prospects [6][7] - Despite this ranking, the industry has underperformed the S&P 500 and broader technology sector, decreasing by 8.9% over the past year compared to the S&P 500's 12.4% increase [10] - The industry currently trades at a forward P/E ratio of 18.16X, lower than the S&P 500's 21.66X and the sector's 25.6X [13] Company Highlights - Allient, with a Zacks Rank 1, is focusing on operational efficiency and has seen its shares appreciate by 29% year-to-date, with a positive earnings estimate revision for 2025 [17][18] - TTM Technologies, also a Zacks Rank 1, is experiencing strong demand in aerospace, defense, and data center sectors, although its shares have dropped by 6.6% year-to-date [20][21] - American Superconductor, ranked 2, is benefiting from strong demand for its D-VAR systems and has seen a 13.2% return year-to-date, with a slight upward revision in earnings estimates for fiscal 2026 [24][25]

Group 1 - Allient (ALNT) has shown strong year-to-date performance, gaining approximately 23.1%, while the Computer and Technology sector has returned an average of -3.8% [4] - The Zacks Rank for Allient is currently 1 (Strong Buy), indicating a positive earnings outlook and strong analyst sentiment [3] - The Zacks Consensus Estimate for Allient's full-year earnings has increased by 5.5% over the past three months, reflecting improved earnings expectations [4] Group 2 - Allient is part of the Electronics - Miscellaneous Components industry, which ranks 77 in the Zacks Industry Rank, with an average loss of 1.4% this year [6] - In comparison, ASML (ASML), another stock in the Computer and Technology sector, has a year-to-date return of 5.7% and is part of the Semiconductor Equipment - Wafer Fabrication industry, which ranks 20 [5][7] - The Semiconductor Equipment - Wafer Fabrication industry has seen a positive movement of +5.6% since the beginning of the year, indicating better overall performance compared to Allient's industry [7]